The Holding Company for Cotton, Spinning, Weaving and Clothes in Egypt recently signed a contract to set up a new spinning factory at the Misr Spinning and Weaving Company in al-Mahalla al-Kubra. To be located on 62,500 square meters, the factory will accommodate more than 182,000 spinning wheels with an average production capacity of 30 tonnes per day.
Construction on the factory is estimated to take around 14 months at an estimated cost of roughly LE780 million.
The contract was signed between the holding company’s chairman and the deputy chairman of Gama Construction.
It comes as part of the state’s comprehensive development plan for cotton, spinning and weaving companies under the ministry of public business sector.
This plan will take around 30 months to implement at a cost exceeding LE21 billion and includes a total modernisation of construction and machinery.
The development plan involves increasing specialisation and removing redundant activities in more than one company by merging 23 spinning, weaving, dyeing and processing companies into nine, and merging nine cotton trade and ginning companies into a single entity, according to a report in an Egyptian English-language daily.
The merger aims to have the ten remaining companies become strong entities capable of competing and integrating while tripling current production capacity.
Those companies set to be merged will continue operating as usual until the completion of the merger, which is expected by summer next year.
